EGX to launch Tamayoz index for SMEs markets

June 14, 2021

EGX 30: (9,978), weekly change (-0.8% ), YTD (-8.2%)
Traded Value 1W Avg: EGP 494M, (+5.4%) 90D Avg.  
EGP:USD: 15.65 (-0.3% ) weekly change 

Local Pick-ups

EGX to launch Tamayoz index for SMEs markets

The index committee at the EGX has developed a new index methodology named Tamayoz. The index includes a sample of listed securities on the SMEs market. The listing methodology was based on several criteria including financial and operational performance, like revenues compounded growth rate, operating cash flow and other indicators. The index will measure the performance of 8 companies which will reflect the performance and movement of the SME market. The launch is expected to happen within days. (EGX)

FRA approves Kima’s EGP 2B capital raise

The Egyptian Financial Regulatory Authority (FRA) approved the capital increase request of Egyptian Chemical Industries (KIMA). The company will increase its issued capital by EGP 2B through the issuance of 400M of tradable rights at EGP 5.0 per share. The record date of the rights issue is June 27, 2021. (Zawya)

TMG starts construction of EGP 500B Nour city

Talaat Mostafa Group & Ministry of housing announced they have laid the foundation stone of Nour city, an EGP 500B project. Nour will be the first smart green city in Egypt. The city is built on an area of 5K feddan and will accommodate 140K residential units and 600k residents. (Press release)

Other Local Headlines

  • Monetary policy committee of CBE to meet this week.
  • Egypt imposes 14% VAT on online delivery services
  • Ahmed Ezz increases stake in Ezz Steel
  • CIRA is planning to establish a new language school in New Rashid
  • Ghazl El Mahalla to go public in 2 months.
  • E-payment Ebtikar to go public in Q4 2021.
  • Orascom Construction & Metito deliver a USD 130M desalination plant.

Global Pick-up

FDA approves Biogen Alzheimer’s drug

FDA has approved a new Alzheimer’s drug developed by biotech company Biogen. This is considered the first therapy for Alzheimer’s in 20 years. The FDA approval came however under the condition that Biogen will conduct another clinical trial as several experts have shared their concerns and doubted Biogen clinical data. The company shares has soared 38% on the news. (Robinhood snacks)

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Word of the week – Exchange Traded Fund (ETF)

An Exchange Traded Fund (ETF) is an investment product that represents a portfolio of securities. It offers investors an innovative way to get effective exposure to specific instruments, markets or sectors.

Book of the week – Economics in 2 lessons

Understanding the economy is an essential skills to any investor as several economic factors and indicators affect, directly and indirectly, the financial markets. This book will illustrate the major concepts of economics in two lessons, which are why markets work most of the time and why they sometimes fail. (goodreads)

Earnings Call:

  • Juhayna reports EGP 440M net profits in FY 2020, a 34% YoY increase
  • Emaar Misr reported net profits of EGP 529.1M in Q1 2021, a 114% YoY loss shrink.
  • MM Group reported EGP 130.2M net profits in Q1 2021, a 22% YoY increase
  • Orascom Financial Holding reports EGP 19M profits in Q1 2021